AMG Packaging and Paper Company Limited managed to eke out an eight per cent rise in net profits for 2021 to $60.59 million. That is up from profits of $56.21 million in 2020.

This performance by the publicly listed manufacturer of packaging materials is considered creditable, given that it comes against a decline in revenues. For the year in review, revenues amounted to $705.91 million, which was down two per cent from the $720.45 million book for the same period a year earlier. Revenues for the last quarter rose by five per cent, moving from $186.95 million in 2020 to $197.02 million for the period under review.

Total manufacturing costs amounted to $493.45 million, which represents a seven per cent decrease in comparison to the $530.95 million booked in the previous. Gross profit for 2021 amounted to $212.46 million, which is up 12 per cent over the $189.50 million reported the prior year.

Marginal rise in admin expenses

Administrative expenses rose by two per cent to close at $95.86 million versus $93.85 million reported in 2020. Selling & distribution expenses amounted to $8.40 million, slightly up from the $8.26 million posted in 2020.

Impairment loss more than doubled to $5.36 million coming from $2.01 million in 2020. Finance costs declined year over year by three per cent to a total of $9.91 million, down from the $10.26 million posted in 2020.

As at August 31, 2021, total assets amounted to $906.11 million, compared to its value of $821.28 million a year ago, a 10 per cent increase year on year. This increase was attributed to a 106 per cent climb in inventories, which amounted to $221 million relative to $107.43 million in 2020.

The upward movement was tempered by a 50 per cent decrease in cash & cash equivalent which totalled $130.57 million coming from $259.29 million in 2020.

2021 challenging year

In their report to shareholders, the company’s management conceded that 2021 was a challenging year. “There were numerous challenges we faced throughout the year. The COVID-19 pandemic continues to affect our operations particularly the lockdown days and the curfew hours. The dramatic increased in freight cost as well as the shortage of paper on the world market, continues to drive up the cost of paper,” the management explains.

The management team says it continues to monitor what is happening on the world and local markets.